Fitch downgraded the ratings of Tata Motors to 'BB-' from 'BB' and also lowered the outlook to negative.
New Delhi: Shares of Tata Motors on Thursday fell nearly by 5 per cent after rating agency Fitch downgraded the ratings of the company and also lowered the outlook to negative.
The scrip declined 4.56 per cent to close at Rs 144.35 on the BSE. During the day, it dropped 4.95 per cent to Rs 143.75. On the NSE, shares of the company tanked 4.79 per cent to close at Rs 144. It was the worst hit among the front-line companies on both the key indices at close of trade.
On the traded volume front, 20.65 lakh shares were traded on the BSE and over three crore shares on the NSE during the day.
Global rating agency Fitch on Wednesday downgraded the ratings of Tata Motors to 'BB-' from 'BB' and also lowered the outlook to negative, citing rising risks to its already poor profitability and free cash generation over the next two-three years. Fitch had on February 6 placed the automakers long-term issuer ratings of 'BB' on rating watch negative.
The downgrade reflects an expected reduction in the company's profitability and free cash generation in the next two-three years, Fitch said in a note. Meanwhile, the company also reported a consolidated net loss of Rs 3,679.66 crore for the first quarter ended June 30.